STEP 9:
Get a Grip on Your Business Model

You can’t fully plan out your business model until you’ve developed an in-depth understanding of your customer, but it helps to get a grip on your business model as an additional lens for deciding on a market entry point. This is especially true for climate and energy entrepreneurs. In particular, if you’re working with a novel technology, you need to figure out where to focus on the value chain. You also need to make high-level decisions like whether to license the technology, sell equipment, or sell the end product.

One exciting aspect of this step is the opportunity for creativity. In the climate and energy space, traditional business models don’t always work. Complex supply chains and entrenched players can make it tough to break in. But that’s also where the fun begins! You get to explore ways to disrupt the status quo, find shortcuts, and create new models that deliver value more efficiently.

By the end of this step, you’ll have an initial concept of how your venture will make money. You can then use this first grip on your business model to inform key strategic decisions, like your choice of Beachhead Market. However, keep in mind that your business model is likely to change as the venture scales.